The AVISTA OIL Group participated in this year’s ICIS 2026, one of the most important international platforms for the lubricant and base oil industry. Our colleague Mario Majic represented the AVISTA OIL Group on site and presented key insights into the evolving role of circular economy models in the lubricant sector. His presentation, based on the concept “Redesigning the Bridge: Circularity and the Future of Lubricants,” highlighted how fundamentally our industry is transforming.
From a Linear Value Chain to a Complex Circular System
For decades, the lubricant industry operated along a traditional linear value chain—from raw material extraction to production and eventual disposal. In his presentation, Mario Majic emphasized that this model no longer meets today’s economic and environmental requirements. Circularity is no longer comparable to a simple bridge; it functions as a complex, interconnected system.
This system only works when all stakeholders collaborate closely: lubricant producers, additive suppliers, used-oil collectors, re-refiners, OEMs, distributors and policymakers. Only through this coordinated interaction can a fully functional circular loop be established, enabling the sustainable use of valuable resources.
A Politically Mandated and Economically Essential Value Creation Model
Mario also pointed out the increasing significance of circularity within Europe’s political and regulatory landscape. The European Union is strengthening its focus on circular resource flows to reduce dependency on external markets, improve supply chain resilience and secure critical raw materials within the EU. Regulatory initiatives such as stricter circularity requirements, Digital Product Passports, increased recycled-content obligations and extended producer responsibility demonstrate that circularity is more than an environmental ambition.
It is becoming a strategic economic model for companies looking to secure long-term competitiveness.
CO₂ Reduction Across the Entire Value Chain
A major part of the presentation focused on how the carbon footprint of lubricants evolves across their entire lifecycle. Mario demonstrated that the greatest emission reductions occur not at the product level alone, but across the entire value chain. Transitioning from Virgin Base Oils (VRBO) to Re-Refined Base Oils (RRBO) unlocks significant reduction potential.
By reintroducing used oil into a closed-loop system, emissions decrease throughout all lifecycle stages—from raw material sourcing and refining to use-phase and re-refining. Studies show that RRBO-based products can reduce a lubricant’s carbon footprint by over 60 percent.
This systemic perspective illustrates that circularity is one of the most effective levers for decarbonising the lubricant industry.
High-Quality Products Without Compromise
Another key aspect highlighted was the technological progress in re-refining. Modern re-refining processes now deliver base oils that match—or even exceed—the quality of virgin base oils. These products meet demanding technical specifications and are increasingly established as high‑performance solutions across multiple applications.
This shows clearly that circular products do not require any trade-offs. Instead, they represent an important technological and economic advancement for the future of the lubricant industry.
Conclusion
AVISTA OIL’s participation in ICIS 2026 underscored the growing importance of circularity for the future direction of the European lubricant sector. The core messages delivered by Mario Majic are clear:
- Circularity is a complex system that requires the cooperation of all stakeholders.
- It is politically mandated and economically essential for strengthening Europe’s independence and competitiveness.
- It offers significant CO₂ reduction potential across the entire value chain.
- Modern circular products meet or exceed the quality of conventional lubricants.
The future of the lubricant industry is interconnected, circular and sustainable — and the AVISTA OIL Group is committed to shaping this transformation.